A Guide to Online Payment Security For Business Owners

Businesses across industries have embraced online payments to improve their payment infrastructures.

We have witnessed a sharp digital shift in payments, but what remains constant is theft.

Around 4 in 10 UAE customers reported experiencing fraud attempts, and it doesn't just end there.

Identity theft is another threat shadowing the UAE when it comes to online transactions.

But this does not stop consumers from using online payment modes to transact.

In fact, customers are now more informed than ever before. They proactively choose brands offering secure payment gateways and practices.

In this article, we share the must-have online payment security methods and practices that customers using Payby follow.

Recap: What is Online Payment Security?

Online payment security consists of the methods, practices, processes, or measures that business owners adapt to save all transactions from malicious activities, fraud, data breaches, and other similar unauthorized access.

This instills customer confidence and also makes businesses immune to financial losses or legal constraints.

What are common threats to online payment security?

As a business owner, it is your responsibility to keep your company’s and customer’s data safe. Here are the most commonly reported threats to payment security and how you can avoid them:

Phishing Attacks

This is one of the most common forms of cyberattack, where scammers pose as legitimate sources with emails, websites, and messages having a close resemblance. They appear to be very convincing, tricking unaware people into making dubious payments and transfers.

Here’s how you can avoid such attacks:

• Train your employees to help them identify and fight against such attacks when encountered. Also, plan out customer awareness drives to educate your customers.
• Deploy authentication protocols, email filtering solutions, and Multi-Factor authentication (MFA).
• Choose the right security solutions that successfully create the firewall required to save your stakeholders from malicious activities.
• And, keep their solutions and software security up to date. This includes client emails, browsers, and operating systems.

Data Breaches

Access granted to anyone outside of your organization is a data breach. Weak payment gateway security or hacking can lead to unauthorized access, followed by business loss.

The first step to fighting data breaches is complying with data privacy laws and careful access management of sensitive data.

• You must then set up an incident management system with adequate response time for when a breach occurs.
• Figure out a process for identifying and containing the breach immediately, as well as other protocols like informing the stakeholders and communicating.
• Devise a thorough follow-up plan for examining and finding the root cause of the breach to prevent them in the future and rectify any weak touchpoints.

Malware and Ransomware

Malware is software designed to cause harm or gain unauthorized access to systems. It can be a computer, a server, or a mobile device. Ransomware, on the other hand, aims to encrypt or disrupt a system’s data, cutting off the administrator’s access. The fraudster then asks for a ransom to give access back or help decrypt the data.

These online payment security issues can cause real harm, and this is how you can prevent them:

• Their common sources are emails, compromised websites, and downloads. Train your employees to steer clear of them.
• Have security measures in place for any new app or software downloads, as well as links.
• Implement security solutions that can detect any potential malware during the download and automatically remove it.

Identity Theft

Scammers can try to steal your identity by finding your business or personal details to create new ones or gain access to existing accounts and systems. They can steal your money or even impersonate you to steal your customer’s money. Here’s what can be done to avoid it:

• Advise your employees not to use public wi-fi networks to access your company data.
• Deploy strong passwords to secure access, and scan systems for suspicious emails, phone calls, or text messages.
• Monitor your business transactions and reports to identify any suspicious activity.

But, you can never be too careful with the rise in types of threats. Multiple new threats keep hitting the news, so you must follow the common best practices and safeguard your business.

Best Online Payment Security Practices to Follow 

As a business owner, you must be aware of and ready with the best payment gateway security methods. This not only enhances your customer’s trust and confidence but also keeps your business up and running. Here are all the online payment security best practices you need to know apart from using solutions such as Payby to create transactional interfaces:

1. Data Encryption (TLS & SSL Protocols)

Data encryption is one of the best security practices businesses can adopt. This process encodes payment data to provide end-to-end protection. No one else but the person with the encryption key can read this encrypted data. TLS (Transport Layer Security) and SSL (Secure Sockets Layer) are the keys that can encrypt data. They ensure the security of data exchange on the internet.

One of the best examples of these keys is securing HTTPS. Websites with “https://” have an extra layer of SSL-certified protocol, as compared to “http://” which means insecure.

2. PCI-DSS Compliance

The PCI Security Standards Council sets the standards for recording and handling customers' data by a business. This global organization lays down ground rules, terms, and conditions through its Payment Card Industry Data Security Standards (PCI-DSS) policy. Businesses must be PCI-DSS compliant to avoid security breaches and legal implications.

3. 3D Secure

This system is put in place to double-check your customer’s identity while making a payment. Banks and financial institutions generally handle this layer to verify an identity via biometric scans or PIN codes.

4. Payment Gateway Security

Embed the right payment gateway to enjoy high security. The security of your chosen payment gateway dictates your security, so you must ensure that you choose the right provider. The success of payments also depends on the provider you choose because customers go through the payment when they see a provider they know and trust.

5. Payment Tokenization

This process replaces the original payment details, like card numbers, with a digital identifier called a ‘token’. These tokens help process payments without storing customer’s data, enhancing the security of a website. This ensures security even when a website is compromised.

6. Up to Date Operating Systems

Computer systems are frequently enhanced to improve security measures. To enjoy these security measures, you must keep all your operating systems updated. It is as simple as that.

7. Prevention and Monitoring Systems

These systems are customized based on a business’s personal needs and preferences. At PayBy, we have deployed an advanced fraud detection and prevention mechanism integrated into the payment gateway to keep you secure.

8. Robust verification process

You must also have a verification process for your customer’s data to ensure no unauthorized payments are made. This includes verifying a customer’s card details, address, contact details, and more.

9. Employee Training

Train your employees to make them aware of online payment security issues. They must be able to recognize a threat and know what action to take. Such understanding on all levels is very important. Create guidelines, training sessions, and more to emphasize it.

10. Customer awareness

Not just your employees but your customers should also be informed. Plan out communications campaigns around awareness of any ongoing or potential online threats. You can also use such campaigns to drive trust among your customers and help them understand that making payments with your business is safe and secure.

11. Two-Factor Authentication

This method uses two verification steps to identify and verify a user. This additional step can prevent a lot of mishaps and enhance security. A popular example of this process is OTP confirmation, where customers must enter an OTP sent to their registered mobile number besides typing in the PIN or password.

Conclusion

Online payment security is as critical as your business solution because one small mistake can lead to monetary loss and legal implications. Not just your business and its success, but its reputation is also linked to your online payment security.

A customer data breach leads to serious legal implications, fines, negative news coverage, and a loss of reputation.

But not with PayBy.

PayBy uses AI-based fraud monitoring, 3D secure authentication, and transaction risk analysis to ensure your security as well as approval rates. We follow the best online payment security methods and practices to keep your business and customers safe.

Want to boost the online security you offer on payments? Get started with PayBy today.